For the week ending May 4, 2013, feeder cattle prices reported by Texas auctions were mostly steady to $5 higher per hundredweight (cwt), with a few as much as $8 higher, but some $1 to $3 lower on at least a portion of their offerings. Texas direct feeder cattle sales were firm to $3 higher and the Oklahoma City National Stockyards were steady to $2 higher. Tight supplies, improving pasture conditions in some areas, higher beef markets and periodic increases in feeder cattle futures have supported feeder cattle auctions. However, those gains were also limited by stagnant fed cattle markets and negative cattle feeding margins. Fed cattle cash prices were unchanged at $128 per cwt. Choice wholesale beef prices hit a record-high $201.68 on Friday and were up 4.6 percent for the week. Weekly beef export sales were well above the prior four-week average, with cumulative sales still down six percent from a year ago. Cotton prices were higher on concerns about slow planting progress, dry conditions in major Texas growing areas and weekly exports that were up 32 percent from the previous week and 69 percent higher than the prior four-week average. Wheat prices were higher on reports of additional freeze damage to the winter wheat crop, declining crop conditions and supportive wheat exports that were higher than the previous week. Corn prices were higher after a late-season snow storm brought planting to a standstill in the western Corn Belt. Higher ethanol production, improved ethanol profit margins and weekly exports that were up from the previous week also contributed to the increase. As for futures markets, cotton, wheat and corn were higher, but fed cattle, feeder cattle and lumber were lower. Much of the state received rainfall during the week, though totals of one-half inch or more were limited to parts of South, Central and West Texas and the Upper Coast. Information on agricultural weather and crop conditions is available in the weekly USDA-NASS “Texas Crop Progress and Condition” report at:
www.nass.usda.gov/Publications/State_Crop_Progress_and_Condition/current/current_tx.rtf.
All cash prices above are market averages for locations covered by the USDA Market News program and do not reflect any particular sale at any specific location. Feeder cattle prices are for 500-600 pound medium and large No.1 steers at the Oklahoma City National Stockyards. Futures prices are quoted for the nearest month contract on the last trading day of the week. Timber prices are from the Texas A&M Forest Service, bimonthly “Texas Timber Price Trends.” MBF = thousand board feet. For additional information, contact TDA at (800) 835-5832 or visit our website, www.TexasAgriculture.gov.
